The figure above shows the demand, marginal revenue, and marginal cost curves for Paul's Parrot pillows, a monopoly producer of pillows stuffed with parrot feathers
When Paul maximizes his profit, Paul produces ________ pillows per hour, and if the market was perfectly competitive, ________ pillows per hour would be produced. A) 0; 4,000
B) 3,000; 4,000
C) 4,000; 4,000
D) 3,000; 3,000
E) 0; 3,000
B
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The quantity of iPads that people plan to buy this month depends on all of the following EXCEPT the
A) price of a rival's tablet. B) price of an iPad. C) the technology used to produce an iPad. D) price of apps.
The optimal purchase rule is stated as
a. TU = MU. b. MU = P. c. TU = P. d. MU = 0.
“The United States has more oil in Alaska than there is oil in Kuwait. Therefore, the United States should stop importing oil.” Evaluate this statement using economic analysis.
What will be an ideal response?
If the Fed sells $7.5 billion of U.S. bonds in the open market and the reserve requirement is 15 percent, M1 will eventually
A. Increase by $50 billion. B. Increase by $1.125 billion. C. Increase by $7.5 billion. D. Decrease by $50 billion.